Value-Based Care in DMEPOS: Improving Patient Outcomes with Strategic Partnerships

Published in Member Communities on September 02, 2025

As healthcare continues its shift from fee-for-service toward value-based care (VBC), durable medical equipment, prosthetics, orthotics, and supplies (DMEPOS) providers are increasingly recognized as essential contributors to improving outcomes and reducing costs. With over 60% of healthcare organizations expecting increased revenue from VBC in 2025, the time is ripe for DMEPOS providers to align their services with this evolving model.

Understanding Value-Based Care in the DMEPOS Context

Value-based care prioritizes quality over quantity, rewarding providers for quality, outcomes, and patient satisfaction rather than volume. According to CMS and AMA definitions, VBC emphasizes coordinated, patient-centered care, personalized health goals, and performance-based reimbursement. In DMEPOS, this translates to ensuring patients receive timely, appropriate equipment that supports recovery and independence at home—an essential part of the broader healthcare transformation.

The Quadruple Aim of VBC—enhancing patient experience, improving population health, reducing costs, and supporting care team wellbeing—aligns closely with the mission of DMEPOS providers. By enabling home-based care, DMEPOS suppliers help reduce the burden on hospitals and skilled nursing facilities, while improving patient satisfaction and independence.

The Expanding Role of DMEPOS in Value-Based Models

60% of U.S. healthcare dollars are tied to value in some way, with over 40% linked to Advanced Payment Models (APMs) such as Accountable Care Organizations (ACOs). These models increasingly include DMEPOS providers through capitated contracts, narrow networks, and subcontracting opportunities, all part of the shift toward value-based healthcare.

Notably:

Medicare Advantage (MA) is a major driver of VBC, with 54% of Medicare-eligible beneficiaries enrolled in MA plans, projected to reach 64% within a decade.
DMEPOS spending is projected to grow from $38B in 2024 to $73B by 2032, an 8.5% CAGR, reflecting the rising demand for home-based care.

Reducing Hospital Stays and Readmissions

Hospital readmissions are a major cost driver and a key metric in VBC models. DMEPOS providers play a critical role in preventing hospital readmissions and shortening inpatient stays. By delivering equipment that supports chronic disease management, mobility, and safety, they help patients recover at home and avoid complications.

Key strategies include:

Timely discharge support with appropriate equipment
Remote monitoring and respiratory therapy tools
Fall prevention and mobility aids

These interventions are central to outcomes-based care, where success is measured by reduced readmissions, improved satisfaction, and better long-term health. These interventions also align with ACO success metrics such as admissions per 1,000, readmission rates, and emergency department (ED) visits per 1,000—all areas where DMEPOS providers can make measurable impact.

Keeping Patients Safely at Home

DMEPOS providers are uniquely positioned to support aging in place and chronic disease management. By delivering equipment that enables independence and safety, they help patients avoid institutional care settings.

Up to 30% of inpatient stays could transition to hospital-at-home models. This shift is driven by both patient preference and payer incentives. DMEPOS providers enable this transition by supplying:

Hospital beds, oxygen therapy, and wound care supplies
Home dialysis and nutrition support
Telehealth-compatible devices

This not only improves patient satisfaction and quality of life but also aligns with payer incentives to reduce costs in staffing and supply for hospitals, enhancing cost-effective care.

Collaborating with Referral Sources

Referral sources—hospitals, physicians, discharge planners, and home health agencies—are increasingly incentivized to keep patients out of high-cost settings. Strategic partnerships with referral sources not only improve patient care but also position DMEPOS providers as indispensable allies in the VBC ecosystem. DMEPOS providers can strengthen these relationships by:

Demonstrating value through data on reduced readmissions and improved patient satisfaction
Proactively engaging with ACOs, SNFs, and health systems to align services with VBC goals
Offering outcome tracking and compliance reporting to support payer requirements

Referral-driven growth is a cornerstone of VBC success for DMEPOS providers. By aligning with hospitals, physicians, and ACOs, providers can:

Support discharge planning to reduce readmissions
Improve patient experience through reliable service and education
Demonstrate value using publicly available data on readmissions, satisfaction, and cost containment

Preferred provider agreements and network inclusion are increasingly attainable, especially for DMEPOS suppliers who differentiate through outcomes, connectivity, and reliability. These partnerships are key to building a value-driven care ecosystem where every stakeholder contributes to better outcomes and lower costs.

What DMEPOS Providers Can Do Today

To thrive in a value-based care environment, DMEPOS providers should take proactive steps that align with payer goals and patient needs. Key actions include:

Audit current referral relationships to identify gaps and opportunities for stronger collaboration.
Invest in remote monitoring tools that support chronic disease management and reduce hospital readmissions.
Track and report patient outcomes to demonstrate value and meet payer and ACO performance metrics.

These strategies not only improve patient care but also position providers as essential partners in the value-based ecosystem.

Improving Outcomes, Reducing Costs

Ultimately, the integration of DMEPOS into value-based care models leads to better health outcomes and lower costs. By enabling home-based care, preventing complications, and supporting chronic disease management, DMEPOS providers help achieve the core goals of VBC.

Forward-thinking providers are already leveraging technology, data, and partnerships to tell a compelling story—one that shows how durable medical equipment is not just a product, but a pathway to better care.

The macro-level trend toward VBC is good for DMEPOS. It drives care to lower-cost settings, creates incentives for earlier home-based engagement, and aligns with both payer goals and patient needs. At the micro level, providers who show measurable value—such as reduced SNF days and improved satisfaction—are more likely to be preferred partners.

As value-based care reshapes the healthcare landscape, DMEPOS providers have a unique opportunity to lead the charge—delivering not just equipment, but better outcomes, lower costs, and a more patient-centered future.

Want to learn how your DMEPOS business can thrive in a value-based world? Contact VGM Professional Services for more information.

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